Zehnder Group divests Climate Ceiling Solutions business

Zehnder Group AG / Key word(s): Disposal/Forecast Zehnder Group divests Climate Ceiling Solutions business 16-May-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. The non-core Climate Ceiling Solutions business has been loss-making in recent years Private Assets takes over German Climate Ceiling Solutions unit One-off loss of about EUR 10 million (mostly cash neutral) expected Continued focus on execution of strategy in core businesses Outlook for the first half of 2024: Sales decline in the mid-teen percentage range and an EBIT margin before one-off effects of 6-7 %

Graenichen (CH), 16 May 2024: Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, is divesting its Climate Ceiling Solutions business. An agreement on the sale of the Climate Ceiling Solutions unit in Germany (Zehnder Climate Ceiling Solutions GmbH) was reached with Private Assets SE & Co. KGaA (Private Assets). In addition, Zehnder Group also intends to sell its Climate Ceiling Solutions unit in France (Zehnder Climate Ceiling Solutions SAS) to Private Assets. The two companies Climate Ceiling Solutions in Germany and France, formerly part of the radiator segment, were carved out into separate legal entities and have since been managed as independent business units. The business area of Radiant Ceiling Panels for heating and cooling is not part of the transaction and will remain with Zehnder Group.

Due to the specific business model of Climate Ceiling Solutions and its pronounced project orientation, the Board of Directors of Zehnder Group has decided to divest this non-core asset. Overall, Climate Ceiling Solutions generated revenue of around EUR 23 million in 2023 and employed a total of 75 people but has been loss-making in recent years. Closing of the transaction is subject to closing conditions and a prior employee information in France, which is customary for such transactions. The transaction will result in a one-off loss of about EUR 10 million (mostly cash neutral).